The AIG was a large insurance organization prior to the economic crisis

The AIG was a large insurance organization prior to the economic crisis. After it was discovered that AIG wasn’t able to pay back the insurance they were selling, the Federal Reserve had to loan them 85 million dollars to pay them back. It was necessary for the government to step in and pay for the sales because if they didn’t it would cause other banks that were not paid back to fail.

The AIG was a large insurance organization prior to the economic crisis. After it was discovered that AIG wasn’t able to pay back the insurance they were selling, the Federal Reserve had to loan them 85 million dollars to pay them back. It was necessary for the government to step in and pay for the sales because if they didn’t it would cause other banks that were not paid back to fail.